Thanks to The Tax Relief Act of 2010 and the extension of Section 179, you can now deduct the entire cost of new IT equipment in 2011 as a business expense. Prior to this tax law, businesses had to deduct the costs of equipment over a number of years and take depreciation into account. Intended to help spur economic growth, this tax law change allows businesses to deduct items, such as computer software, servers and more, as business expenses. For example, if you make a $500,000 profit in 2011, and you purchased $350,000 worth of equipment in 2011, you will only pay taxes on $150,000 since you can write off these assets. Section 179 allows you to write off up to $500,000 in expenses that qualify for this tax break. Take this opportunity to purchase equipment. The write off will allow your business to free up cash flow. This tax law can change yearly, so take advantage while you still can.
Chips Technology Group is a NY IT Company located in Syosset, NY.